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Chrysler and Daimler-Benz Finalize Proxy Statement/Prospectus

6 August 1998

Chrysler and Daimler-Benz Finalize Proxy Statement/Prospectus

    AUBURN HILLS, Mich., Aug. 6 -- Chrysler Corporation
and Daimler-Benz AG announced today that the Proxy Statement/
Prospectus relating to their planned business combination had been filed with
the U.S. Securities and Exchange Commission and will be mailed to shareholders
over the next several days.
    Among a wide range of legal and financial data, the proxy details two
changes to the business combination agreement.
    First, the companies have agreed that the exchange ratio for Daimler-Benz
shareholders would be increased from one DaimlerChrysler share for each
Daimler-Benz share to 1.005, if the 90 percent minimum condition in
DaimlerChrysler's exchange offer is satisfied.  A 90 percent acceptance level
is necessary to enable the combination to be accounted for as a pooling-of-
interests.  If pooling-of-interests accounting treatment is not obtained, the
ratio would remain at one-to-one.  The exchange ratio for Chrysler
shareholders remains unchanged at .6235.
    Secondly, Chrysler and Daimler-Benz have agreed that DaimlerChrysler will
issue one class of Ordinary Shares in registered format which will trade
worldwide.  Chrysler shareholders will receive the DaimlerChrysler Ordinary
Shares as a result of the business combination rather than DaimlerChrysler
American Depositary Shares as previously provided.
    The shareholders of Chrysler and Daimler-Benz are to vote on the planned
merger in their extraordinary meetings scheduled to be held on September 18,
1998, in Wilmington, Delaware and Stuttgart, Germany, respectively.  The
companies expect to complete the transaction by year-end.